ExGen Resources has signed a binding letter of intent (LOI) for the acquisition of a silver stream on a past-producing gold mine in Chile.
Under the agreement with an arm’s-length private company (PrivateCo), ExGen will receive a 33.4% silver stream until the delivery of 333,334oz of silver, after which it will receive a 16.7% stream on additional silver produced from the asset.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
As per the LoI, ExGen has paid $500,000 as consideration for the silver stream.
This payment was made directly to the vendors on behalf of PrivateCo, a group of private individuals that currently own the property.
PrivateCo is pursuing the acquisition of the property via an option agreement with these vendors.
ExGen CEO Jason Riley said: “ExGen has been evaluating various potential streaming and royalty deals and we are excited to have signed our first silver stream with this LoI.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe agreement outlines that ExGen will pay a delivery price to PrivateCo for the silver delivered under the silver stream equal to 20% of the spot silver price, as quoted on a major exchange mutually agreed by the parties.
According to the binding LoI, PrivateCo must deliver at least 4,200oz of silver to ExGen each calendar quarter, starting with the second quarter of 2027.
If PrivCo fails to meet the quarterly minimum, the vendor will compensate the shortfall by providing ExGen with gold of equivalent value.
This structure ensures ExGen receives consistent deliveries and values.
ExGen will also have preferential rights to take part in any future streaming or royalty transactions by PrivateCo on the property.
The parties may also sign a definitive streaming agreement that will incorporate the LoI terms and other provisions customary for similar transactions.
